Using data to evaluate the health of cryptonetworks
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The document discusses the roles and features of cryptocurrencies, detailing their functions as transaction enablers and their potential to transform business models and governance. It categorizes various types of tokens, such as utility and security tokens, and explores the complexity and decentralization within cryptonetworks. Additionally, it highlights the importance of on-chain data for evaluating network activity and user engagement.
Using data to evaluate the health of cryptonetworks
- 1. The mature and the nascent Using data to evaluate the health of cryptonetworks Elias Simos; Associate at Decentral Park Capital
- 2. Crypto, not Blockchain • Blockchains are the enablers of cryptocurrencies; immutable and often public and decentralized databases, secured by cryptography. • Cryptocurrencies are the unique enablers of new models of business (both open- and closed- source), governance and value capture. • They come with the promises of (i) injecting liquidity in traditionally illiquid markets and (ii) elevating trustlessness in transactions to the new-normal and (iii) making software a public good. A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies & SoV Platforms & Utility Tokens Security Tokens Cryptocurrencies are decentralized, non- sovereign, transaction enablers, that can act as alternatives to fiat money or stores of value; e.g. Bitcoin, Ethereum, Monero Utility tokens are tokens that users will consume in exchange for a service. Utility tokens are enablers of transactions in decentralized ecosystems; e.g. Augur, Storj, BAT Security tokens are much like stocks or bonds - contracts that stipulate their value. Business logic in contract form can be tokenized and self-execute in perpetuity; e.g. Harbor, Polymath Cryptography Economics Computer Science Cryptonetwork Fundamentals Source: Decentral Park Capital !2
- 3. !3 What the heck are cryptonetworks?
- 4. !4 The boundaries are blurred = = = MINER DELEGATOR DEVELOPER USER
- 5. !5 The Web 3.0 stack The Web 3.0 stack - a modular framework Source: Coinbase
- 6. !6 Many parties + many layers = much complexity
- 7. !7 Evaluating cryptonetwork activity BROKE WOKE BESPOKE Price feed, News stream, Rumours On-chain data On-chain, Markets, Social, Sentiment (Market & Developer), Fundamentals, Proprietary metrics, Real-time
- 8. !8 On-chain data reveal: a platform for machines Under the hood of the world computer Source: Sid Shekhar from thetokenanalyst.io
- 9. !9 On-chain data reveal: transaction quality Binance token (BNB) address vs transactions map Source: Decentral Park Research
- 10. !10 On-chain data reveal: user profiles Classifying Ethereum users using blockchain data Source: Matthias De Aliaga
- 11. !11 But, how decentralized are you after all? (pt.1) Quantifying decentralization Source: Balaji Sirinvasan & Leland Lee
- 12. !12 But, how decentralized are you after all? (pt.2) Gini coefficient accross cryptonetworks Source: Decentral Park Research
- 13. !13 Speculation vs Utility (The RVP ™) pt.1 Relative Velocity Proxy for various cryptonetworks, over time Source: Decentral Park Research
- 14. !14 Speculation vs Utility (The RVP ™) pt.2 Bitcoin’s RVP & RVP (stdev30) over time Source: Decentral Park Research
- 15. !15 Value exchange Bitcoin median transaction value over time Source: Coinmetrics Bitcoin active addresses over time Source: Santiment
- 16. !16 Network Utilization Average Gas used/Gas limit Source: Etherscan Number of currencies by ERC type Source: Bloxy
- 17. !17 Validator engagement Staking stats accross PoS networks Source: Messari
- 18. !18 Stakeholder holding behaviour Bitcoin coin age consumed Source: Santiment Bitcoin HOLD waves Source: Unchained Capital
- 19. !19 Developer activity across cryptonetworks TIRED WIRED ADMIRED Github repo activity Source: CryptoMiso
- 20. !20 Conversion rates; from follower to user Cryptonetwork “conversion rates” Source: Decentral Park Research
- 21. !21 Data pipeline of a crypto investor Node API Crawler Warehousing Dashboard Notifications Analysis
- 22. !22 Leading data providers Price Feeds & Market Data 📊OnchainFX 📊Coinmarketcap Exchange Data 💱Bitcoinity 💱DEXwatch 💱Datamish Analysis & Opinion 📈woobull 📈placeholder 📈multicoin.capital 📈reseach.binance 📈messari 📈Token Economy Premium APIs 🔗Coinmarketcap 🔗Nomics 🔗CoinAPI 🔗TokenAnalyst 🔗Blockchain.com 🔗Coinmetrics.io 🔗OnchainFX 🔗Santiment 🔗Coingecko 🔗Mosaic 🔗Trivial 🔗Chainquery & Coinsecrets 🔗ICObench & ICOwatchlist 🔗Cryptopanic Ethereum Ecosystem Analytics 💎Bloxy 💎Nodestats 💎Mike McDonnald 💎mkr.tools & makerscan 💎zumzoom 💎Defipulse 💎0xtracker 💎Dappboard 💎scout.cool 💎BATgrowth Dapp Aggregators 👾State of the Dapps 👾Dappradar 👾Dappreview
- 23. !23 Software as a public good “Your job in a world of intelligent machines is to keep making sure they do what you want, both at the input (setting the goals) and at the output (checking that you got what you asked for).” - Pedro Domingos, Author of The Master Algorithm